Belated ITR Filing: If you have not been able to file income tax return by 31 July, then there is still a chance. You can file ITR by 31 December with some penalty. If you are unable to file the return by 31 December, then you may have to pay a heavy penalty. Also, legal action can be taken against you.
ITR Filing: If you have not yet filed Income Tax Return (ITR) for the financial year 2023-24 (Assessment Year 2024-25), then file it quickly. You can file ITR on 31 December after paying some penalty. Although the last date for filing returns was 31 July. But returns can be filed till 31 December with some penalty. Filing returns so late is called filing belated returns.
If you fail to file returns this time, not only can you be fined heavily but legal action can also be taken. This includes provision of sending you to jail. If you want to avoid heavy fines and going to jail, then leave all the work and file the return first.
How much penalty will have to be paid?
While filing belated return, you will have to pay a penalty of up to 5 thousand rupees. This penalty will be as follows:
Penalty up to Rs 1000: If annual income is less than Rs 5 lakh
Penalty up to Rs 5000: If annual income is more than Rs 5 lakh
What will happen if the return is not filed?
If you do not file belated return, then many types of legal action can be taken against you. These are the main ones:
- The Income Tax Department can issue a notice.
- The penalty can range from 50% to 200% of the tax calculated value.
- In cases of higher value, the punishment can be 7 years of rigorous imprisonment.
Major benefits of filing ITR
- It is easy to claim tax refund
- It is easy to get visa
- It is easy to get loan
- It is easy to start your own business
What is financial and assessment year?
The period from 1 April to 31 March is called financial year. For example, the period from 1 April 2023 to 31 March 2024 will be called financial year 2023-24. The belated return that you will file now is for the financial year 2023-24.
At the same time, the assessment year is the year following the financial year, that is, the year in which the tax related matters of that financial year are assessed. For example, the assessment year for the financial year 2023-24 will be 2024-25.
